World Economy

Lebanon PM Warns of Economic Collapse

Lebanon PM  Warns of  Economic CollapseLebanon PM  Warns of  Economic Collapse

Lebanese Prime Minister Tammam Salam said the government may be unable to pay wages next month amid a political crisis that has left the country without a president or a functioning parliament. The impasse may also prevent the government from selling bonds, affecting the country’s credit rating, Salam told a news conference in Beirut on Sunday, a day after dozens were wounded when a protest against growing piles of garbage turned violent, Bloomberg reported. The inability to service the public debt through bond sales could push Lebanon’s rating down to the ranks of the “failed states,” Salam said. Lebanon is rated B- at Standard & Poor’s, six levels below investment grade. Beset by domestic sectarian crises and regional proxy conflicts, Lebanon has been without a head of state since President Michel Suleiman’s term expired in May 2014, because lawmakers can’t agree on a successor. A Lebanese official, speaking on condition of anonymity, told Bloomberg last week that the country plans to tap international debt markets to raise $1.3 billion this year.